Buying property in Japan as a foreigner: Complete UK guide (2026)

If you’re planning a move to Japan from the UK, finding somewhere to live will be at the top of your to-do list. You might be planning to rent at first, before buying your very own home in Japan.

To help you navigate the process, we’ve put together a helpful guide to buying property in Japan as a UK foreigner. This is a must-read for anyone looking to buy a permanent home, holiday home or an investment property in Japan.

We’ll run through what to expect from the buying process, plus info on fees, taxes, legal requirements, mortgages and the latest Japanese property prices.

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Table of contents

Can UK foreigners buy property in Japan? Can you buy real estate and get residency? What’s the real estate market like in Japan? How to search for a property in Japan What to check before you buy How to buy property in Japan as a foreigner - a step-by-step guide Fees and costs of buying property in Japan Taxes and fees for owning property Loans and mortgages for non-residents Risks and pitfalls of buying property in Japan Moving into your Japanese property Save on currency conversion fees with Wise when buying property in Japan Key takeaways

Can UK foreigners buy property in Japan?

Yes, British citizens and other foreign nationals can buy property in Japan. You can even buy property if you’re not a resident, although you may find it more challenging to meet some of the documentation and other requirements.

Processes like applying for a mortgage and opening a Japanese bank account can also be more complicated for foreigners and non-residents.

There are some types of property that you can’t purchase as a non-Japanese national, however. This includes:¹

• Land designated as ‘forest’ or ‘agricultural’, without getting permission from the Japanese government. This is under the Foreign Exchange and Foreign Trade Act (FEFTA).
• Land near military bases or other security-sensitive locations
• Some condominium buildings which have ‘foreigner bans’ or ‘gaijin bans’ restricting the sale of units to non-Japanese buyers.

Non-residents must also report property purchases to the Bank of Japan within 20 days.¹

Can you buy real estate and get residency?

No, there’s no direct route to permanent residency through buying real estate in Japan.

Unlike some countries, Japan doesn’t have a ‘golden’ or investment visa which allows you to get a residency permit by investing in property.

If you’re looking to move to Japan permanently, you can find full information on all Japan visa types and routes to residency here on the Ministry of Foreign Affairs of Japan website.

📚 Read more: Countries that offer citizenship by investment visa

What’s the real estate market like in Japan?

The Japanese property market is a varied and contrasting one. Some areas such as Tokyo, Osaka and Fukuoka are seeing considerable growth - backed by foreign investment and a weak yen - while other regional and rural markets struggle with housing oversupply.

In the capital, house prices rose by 12.62% (in July 2025) compared to the year before. Tokyo condominiums have been particularly popular, with prices rising 64% over the last four years.²

But in other parts of the country, localised real estate markets are affected by a combination of population decline and falling prices.

Is property a good investment in Japan?

Not sure if Japan is a good place to buy property abroad? Here are some pros and cons to consider.

Pros:

• Foreigner-friendly - there are minimal restrictions on foreigners buying and owning property and land
• Currency advantage - a persistently weak Japanese yen (JPY) continues to make Japanese real estate relatively affordable for international investors
• Good rental potential - especially in major cities where demand is persistently high.
• Cost of living in Japan is generally lower than the UK, so your money goes further.

Cons:

• Depreciation - some rural or underpopulated areas are experiencing stagnation or even decline in property values
• No option to gain residency through property purchase
• Mortgage conditions may be stricter and harder to meet for foreign applicants, and you may need a larger deposit.

📚 Read more: Pros and cons of living in Japan? You'll wanna read this.

How much are the property prices?

So, how much is property in Japan? This is an essential thing to know as you set your budget and start your search.

Generally speaking, Japanese property prices are slightly more expensive (5.2%) than the UK for city centre properties. However, they’re around 32% cheaper for property outside a city centre.³

However, it really depends on exactly what and where you buy.

To narrow it down a little further, here’s a look at the average price for a 70-80m² apartment in some of the country’s major cities:⁴

City	Average property price (JPY)
Tokyo	70 million
Kyoto	62.2 million
Yokohama	47.4 million
Osaka	42.6 million
Fukuoka	37.1 million
Hiroshima	35.5 million
Sapporo	35.3 million
Sendai	34.2 million

Remember that if you’re arranging your property purchase from the UK, you’ll need a safe, reliable and preferably low-cost way to send over fees, deposits and other payments.

The Wise account could be a great solution, with transparent, low fees, and multiple layers of security, so you can safely transfer large amounts both in the UK and overseas.

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Where is the cheapest place to buy property in Japan?

Of the major cities in Japan, Sendai tends to be the cheapest for property prices - with average prices around half those found in Tokyo.

But for the lowest prices, you may want to look at rural areas such as Akita and Aomori in the Tohoku region, as well as places in the Tottori prefecture.

Best places to buy property in Japan

The best place to buy property in Japan all depends on why you’re buying.

If you’re looking to live and work there, major cities like Tokyo and Osaka offer all you could want in terms of lifestyle, job opportunities, amenities and transport connections.

With the real estate market in Tokyo in particular seeing fast growth, this can also be a good place for a buy-to-let or other investment. However, prices there are extremely high compared to the rest of the country, so you’ll need a healthy budget.

If you’re looking for a holiday home or a holiday let, you might want to consider winter sports hotspot Niseko, mountain retreat Karuizawa or the Okinawa islands for their sub-tropical climate.

Wanting to retire abroad? The Okinawa prefecture is a popular place for expat retirees, and is known as “the Hawaii of Japan”.

How to search for a property in Japan

It’s strongly recommended to use an estate agent to find and buy your property in Japan, especially if you’re not a fluent Japanese speaker.

An agent will be knowledgeable about the local property market, and can help you with a lot of the legal and administrative processes involved in purchasing the property. They can also negotiate on the price.

If you’re looking for an agent, aim for one which offers multilingual support.

You can also start the search online yourself, using one of these Japanese property websites and portals:

• Suumo.jp
• Homes.co.jp
• Athome.co.jp

What to check before you buy

Before buying a property in Japan, it’s important to check the following:

• That the property isn’t in a restricted area (i.e. forest land or near to a military base)
• The age of the building - generally speaking, structures built after 1981 (when new building standards were introduced) are safer for earthquakes. The property’s age can also affect insurance and maintenance costs.
• Get your own building inspection carried out to check for risks and problems such as foundation issues, roof leaks, termites and wood rot.
• That the property isn’t in a natural disaster risk zone - check local hazard maps for flood, tsunami and landslide risks.

How to buy property in Japan as a foreigner - a step-by-step guide

Now, let’s run through the steps involved in buying property in Japan as a foreigner:

1. Get your finances in order

Another important thing to do at this early stage is to get your finances sorted. This means setting a budget, getting a mortgage offer (approval in principle) and getting all your paperwork together.

You may also need to open a Japanese bank account, to facilitate easier payments later on.

2. Find a property and arrange viewings

Now it’s time to start searching for your dream home. You can use online property portals and/or local estate agents to find properties.

If you’ve found somewhere you like, arrange a viewing as soon as you can, and start researching the area in the meantime.

3. Make an offer

Once you’ve found your dream home, you’ll need to make a formal offer to the real estate agent. Negotiation is possible, but price reductions aren’t very common in Japan.

You might be asked for evidence of how you’ll finance the purchase at this stage, such as your mortgage agreement or a letter from your bank or lender.

If your offer is accepted, you may be asked to pay what is known as an earnest money deposit (tetsukekin), to show your commitment to the purchase. This is usually around 100,000 to 500,000 JPY.¹

4. Appoint a solicitor

While it’s not mandatory, it’s a good idea to find and appoint a property lawyer. They will help to prepare, check over and translate all documents and contracts.

They’ll also carry out due diligence throughout the transaction, including the checking that the property can be legally sold.

To find a solicitor, start with this list of English-speaking property solicitors on the UK Government website.

5. Review the key property documents

Before signing any contracts or agreements, you’ll need to read the key property documents.

The most important is the Explanation of Important Matters (Jūyō Jikō Setsumeisho), which includes details of:

• The property’s condition
• Its legal status
• Any restrictions or encumbrances.

Review these carefully, or have your solicitor check them over.

6. Get a survey

At this stage, you might want to get a building survey carried out. This involves hiring a surveyor to check the property for structural or other issues.

7. Sign the purchase agreement (Baibai Keiyakusho)

The next step is for both parties to sign the purchase agreement (Baibai Keiyakusho). This is a legally binding contract which outlines all the terms and conditions of the sale, including the completion date.

Once this is signed, you’ll need to arrange a transfer for the deposit, which is usually around 10% to 20% of the purchase price.¹

Consider using the Wise account here to convert your pounds to Japanese yen, avoiding hidden fees and getting the mid-market exchange rate.

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At this stage, you’ll need to contact your mortgage provider to finalise the financing for your purchase.

8. Complete the transaction

To finalise the purchase, the following needs to happen:

• The title is transferred by a judicial scrivener (a certified legal specialist)
• Documentation is filed with the relevant government offices
• You’ll transfer funds to pay the final balance
• You’ll also pay all taxes and fees

Once all of this is done, you’ll get the keys to your new home. Final steps include registering your ownership with the Legal Affairs Bureau. Non-residents will also need to register the purchase with the Bank of Japan.

📚 Read more: How to transfer money from the UK to buy property overseas

How long does it take to buy a property?

It can vary, but buying property in Japan generally takes between 1 and 3 months.⁵

Fees and costs of buying property in Japan

Here are the main fees and taxes for buying property in Japan, which you’ll need to factor into your budget:⁸

Fee/tax	Amount
Real Estate Acquisition Tax (Fudōsan Shotoku Zei)	3% to 4%
Stamp Duty (Inshi Zei)	10,000 to 600,000 JPY
Registration and License Tax (Tōroku Menkyō Zei)	1.5% to 2%
Legal fees (judicial scrivener services)	0.5% to 1%
Estate agent fees (split between buyer and seller)	3% to 3.6% + tax

You may also need to budget for:

• Interpreter or translator services (if needed)
• Mortgage valuation and origination/arrangement fees.

Taxes and fees for owning property

Once you’ve bought your Japanese property and paid all those initial costs, you’ll also have some ongoing fees and taxes to cover as a property owner.

These include:¹

• Fixed Asset Tax (Kotei Shisan Zei) - 1.4% of the property's value, usually paid quarterly
• City Planning Tax (Toshi Keikaku Zei) - 0.3%, for properties in urban areas

There’s also property insurance to factor in, which can cost anywhere between 30,000 and 50,000 JPY a year.¹ You may also pay income tax if you rent out the property.

Loans and mortgages for non-residents

Japanese banks and providers do offer mortgage loans to foreigners, but the conditions, requirements and rates may differ compared to how it works for locals.

It can be very difficult to secure financing if you’re a non-resident, as most lenders will ask for proof of a valid residence status in Japan.¹ You’ll also need to provide evidence of a stable income and a good credit history.

If you are accepted, you may only be able to borrow around 70% of the total property value as a foreign applicant.¹ This means you’ll need a larger deposit.

Not many Japanese banks will be able to provide terms and conditions in English, so you may need to use the services of an interpreter/translator.

Risks and pitfalls of buying property in Japan

One of the main things to watch out for when buying or selling property abroad are scams.

To avoid these, it’s strongly recommended to work with qualified and credible professionals such as real estate agents and solicitors. Ideally, you should also check for membership of a professional body when working with any property experts, brokers or agents.

Do as much due diligence as possible before purchasing, and be cautious before sending money or a deposit. You should also visit the property in person (don’t rely on online listings alone)

Other risks and pitfalls to watch out for include:

• Language barrier - real estate contracts and negotiations are usually conducted in Japanese, so you’ll need multi-lingual support to avoid misunderstandings and understand the purchase process
• Akiya(abandoned houses) - these can be incredibly cheap, but often come with high renovation costs
• Natural disasters and insurance - Japan is high-risk for a range of natural disasters, so you need to make sure that any property you buy meets current earthquake standards and can be insured without excessive costs.

Moving into your Japanese property

Before you can get the keys to your new home, you’ll have a final few tasks to check off your list.

Insurance

It’s strongly recommended to take out a buildings insurance policy starting from your completion date. In fact, you might find it's a mandatory condition of your mortgage offer.

Setting up utilities

If you know when your completion date will be, it makes sense to get some essentials set up in advance of moving in.

A prime example is utilities, such as heating, power and water. Get these sorted as early as you can, and the moving process should be a little smoother.

Energy efficiency renovations

If you’ve bought an older Japanese property, you might want to make some energy efficiency improvements to it. For example, upgrading the insulation, replacing the windows or installing an efficient modern heating system.

Save on currency conversion fees with Wise when buying property in Japan

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Key takeaways

• British citizens can legally buy property in Japan even without residency, though non-residents must report purchases to the Bank of Japan within 20 days.
• Foreigners are generally prohibited from buying forest or agricultural land without government permission, and some condominiums may have specific "foreigner bans."
• While major cities like Tokyo and Osaka are seeing double-digit price growth (e.g., 12.6% in Tokyo), many rural and regional markets are struggling with oversupply and falling prices.
• It is strongly recommended to buy properties built after 1981 to ensure they meet modern seismic safety standards, which impacts both safety and insurance costs.
• Securing a Japanese mortgage as a non-resident is very difficult; most lenders require residency status and typically offer a maximum loan-to-value (LTV) ratio of 70%.

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Sources used:

1. Tokyo Portfolio - Can Foreigners Buy Property in Japan?
2. Capital - Japan housing market 2025: growth, currency and risk
3. Numbeo - Cost of Living Comparison Between United Kingdom and Japan
4. Tokyo Portfolio - How Much Does It Cost to Purchase a Home in Japan
5. Mailmate - Buying A House in Japan as a Foreigner: Mortgages, Costs & Legal Tips

Sources last checked 19-Feb-2026